Mortgage Calculator (Free Monthly Repayment Calculator)
Use this free mortgage calculator to estimate your monthly repayments, total interest and the full cost of your home loan. Enter your property price, deposit, interest rate and loan term for an instant breakdown. See how extra payments could save you thousands. Once you have your results, use our free AI Mortgage Analysis below to get a personalised affordability assessment with practical advice.
Mortgage Calculator
📋 Yearly Repayment Schedule
| Year | Principal | Interest | Balance |
|---|
🤖 AI Mortgage Analysis
Enter your mortgage results below — include your income, deposit and any other relevant details — and get a personalised affordability analysis with practical advice instantly.
Ask a follow-up question or request changes
Try Another Calculator
How to Use the Mortgage Calculator
Enter your property price, deposit amount, annual interest rate and loan term. Optionally add an extra monthly payment to see how much interest you could save. Click Calculate for your full mortgage breakdown including a yearly repayment schedule.
How Mortgage Payments Are Calculated
Your monthly mortgage payment is calculated using the amortisation formula. Each payment covers both interest on the remaining balance and a portion of the principal. In early years most of your payment goes toward interest — over time more goes toward reducing the loan.
Formula: M = P × [r(1+r)^n] / [(1+r)^n−1]
Where P = loan amount, r = monthly interest rate, n = total number of payments
How Much Deposit Do You Need?
Most lenders require a minimum deposit of between 5% and 20% of the property price. A larger deposit means a smaller loan, lower monthly payments and less total interest paid over the life of the mortgage. A deposit of 20% or more typically gives access to better interest rates and a wider choice of mortgage products. The minimum deposit required varies by country and lender so always check with your local lender or mortgage broker for specific requirements.
How Much Can You Borrow
Most mortgage lenders will lend between 4 and 5 times your annual household income, though this varies significantly by country, lender and your personal financial situation. Your deposit size, credit history, existing debts and monthly outgoings all affect what lenders will offer you. It is always worth speaking to a mortgage broker or financial advisor who can compare deals across multiple lenders and find the best rate for your circumstances.
Fixed Rate vs Variable Rate Mortgages
A fixed rate mortgage locks your interest rate for a set period — typically 2, 3 or 5 years — giving you certainty over your monthly payments regardless of what happens to interest rates. A variable rate mortgage moves in line with your central bank’s base rate or the lender’s own rate. Fixed rates offer security while variable rates can be cheaper when interest rates fall. The best option depends on your country, current interest rate environment and personal financial situation.
How to Reduce Your Mortgage Costs
Overpaying your mortgage even by a small amount each month can save significantly in interest and cut years off your term. Many lenders allow overpayments of up to 10% of the outstanding balance per year without penalty — check your mortgage terms before overpaying. Remortgaging when your fixed rate deal ends rather than rolling onto the lender’s standard variable rate is another way to save money. A mortgage broker can help you find the most competitive deal when your current term expires.
Should You Make Extra Repayments?
Yes — extra repayments are one of the most effective financial decisions a homeowner can make. Even a small additional payment each month can save tens of thousands over the life of a mortgage and significantly reduce your loan term. Use the extra payment field in the calculator above to see exactly how much you would save. Always check with your lender whether early repayment charges apply before making large lump sum payments.
FAQs
How much can I borrow for a mortgage?
Most lenders will lend between 4 and 5 times your annual income, though this varies by country and lender. Your deposit size, credit score and existing debts also affect how much you can borrow. Speaking to a mortgage broker or financial advisor will give you a clearer picture of your borrowing capacity.
What is the difference between principal and interest?
Principal is the amount you borrowed. Interest is what the lender charges for the loan. Early mortgage payments are mostly interest — as the balance reduces over time, more of each payment goes toward the principal.
What happens if interest rates rise?
If you are on a variable rate mortgage your monthly payments will increase when rates rise. Use this calculator to test different interest rate scenarios and see how your payments would change. A fixed rate mortgage protects you from rate increases for the duration of the fixed term.
Is a 15 year or 30 year mortgage better?
A 15 year mortgage has higher monthly payments but significantly less total interest. A 30 year mortgage is more affordable monthly but costs considerably more overall. Use the loan term dropdown in the calculator to compare both scenarios side by side.
What is an offset mortgage?
An offset mortgage links your savings account to your mortgage balance. Your savings balance reduces the amount you pay interest on, which can save money without requiring you to make overpayments. This calculator does not currently account for offset arrangements.
Can I get an AI analysis of my mortgage results?
Yes — scroll down to the AI Mortgage Analysis below the calculator. Enter your results along with your income and any relevant details to get a personalised affordability assessment with practical advice instantly.
Is this calculator free?
Yes completely free with no sign-up needed.